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Minchanka [31]
3 years ago
15

The economy is in equilibrium when Real GDP is . At this point, the economy is also in . Which of the following did Keynes argue

would be needed to move the economy to equilibrium at Natural Real GDP? Check all that apply. A decrease in consumption A decrease in government purchases An increase in government purchases
Business
1 answer:
grandymaker [24]3 years ago
4 0

Answer:

c. An increase in government purchases

Explanation:

Note: The full question is attached below

When the real GDP is $550, the total expenditure will be $450 + $55 + $70 = $575

When the real GDP is $600, the total expenditure will be $475 + $55 +$70 =  $600

Note: Graph showing total production and total expenditure is attached below as well. The economy is in equilibrium when real GDP is $600 ​​​​. At this point, the economy is also in recessionary gap.

Thus, an increase in government purchases will be needed to move this economy to equilibrium at natural real GDP.

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Aspen Company estimates its manufacturing overhead to be $515,000 and its direct labor costs to be $515,000 for year 2. Aspen wo
Step2247 [10]

Answer:

COGS    3807 debit

FG          7896 debit

WIP         2397 debit

  Factory Overhead  14,100 credit

--to record the underapplication of overhead--

Explanation:

overhead rate:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

$515,000 overhead /  515,000 labor cost = $1

each labor cost generates a dollar of overhead.

221,400 x 1 =   221,400 overhead in COGS

459,200 x 1 = 459,200 overhead in Finished Goods

139,400 x 1 =   139,400 overhead in WIP inventory

Total applied  820,000

Actual            805,900

Underapplied    14,100

Now we weight each concept and determiante the portion underapplocated in each concept

\left[\begin{array}{cccc}Item&Value&Weight&Allocated\\COGS&221400&0.27&3807\\FG&459200&0.56&7896\\WIP&139400&0.17&2397\\&&&\\Total&820000&1&14100\\\end{array}\right]

4 0
3 years ago
An aggregate production function shows​ ________. A. the relationship between a​ country's output and its price level B. various
Maru [420]

Answer:

The correct answer is letter "C": the relationship between a​ country's GDP and its factors of production.

Explanation:

The Aggregate Production Function describes the relationship between a country's Gross Domestic Product (GDP) and the factors of production involved in it. Aggregate Production functions are considered physical and human capital, labor, knowledge, social infrastructure, and natural resources. Production increases as a result of increases in capital, natural resources, and labor.

3 0
3 years ago
1. What is the revised net operating income if unit sales increase by 16%? 2. What is the revised net operating income if the se
weeeeeb [17]

Answer:

1) NOI = $90,240

2) NOI = 29,250

3) NOI = 133,260

4) NOI = 110,190

Explanation:

<em>The question is incomplete.</em>

<em />

<em>Sales (38,000 units)      $342,000     ($9.00 per unit)</em>

<em>Variable expenses        $228,000     ($6.00 per unit)</em>

<em>Contribution margin        $114,000     ($3.00 per unit)</em>

<em>Fixed expenses                $42,000 </em>

<em>Net operating income      $72,000</em>

1. What is the revised net operating income if unit sales increase by 16%

If unit sales increase, we can calculate this with a 16% increase in the contribution margin.

NOI=CM*(1+0.16)-FE=114,000*1.16-42,000=132,240-42,000\\\\NOI=90,240

2. What is the revised net operating income if the selling price decreases by $1.50 per unit and the number of units sold increases by 25%?

A reduction of $1.50 in price means a reduction of the same amount in the contribution margin per unit (CMu), as the variable expenses stay the same .

Also, the contribution margin increases by 25%, for the increase in units sold (q).

NOI=CM_u*q-FE=(3.00-1.50)*(38,000*1.25)-42,000\\\\NOI=1.5*47,500-42,000=71,250-42,000\\\\NOI=29,250

3. What is the revised net operating income if the selling price increases by $1.50 per unit, fixed expenses increase by $6,000, and the number of units sold decreases by 6%?

The selliing price will be added to the contribution margin per unit.

The units sold are increased 6%.

NOI=CMu*q-FE=(3.00+1.50)*38,000*1.06-(42,000+6,000)\\\\NOI=4.5*40,280-48,000=181,260-48,000\\\\NOI=133,260

4. What is the revised net operating income if the selling price per unit increases by 20%, variable expenses increase by 30 cents per unit, and the number of units sold decreases by 11%?

The contribution margin per unit, with a increase in price and an increase in variable cost, becomes:

CM_u=P-VE_u=9.00*(1.20)-(6.00+0.30)=10.80-6.30=4.50

The units sold is now:

q'=(1-0.11)q=0.89q=0.89*38,000=33,820

Then, the net operating income becomes:

NOI=CM_u*q-FE=4.5*33,820-42,000=152,190-42,000\\\\NOI=110,190

5 0
3 years ago
If a positive externality in consumption is present in a market, then
larisa [96]
Positive externality is a benefit that is enjoyed by a third party as a result of business transaction. Third parties include any individual, property owner or an organisation or a resource that is indirectly affected. If a positive externality in consumption is present in a market, then the private benefit from a consumption will be different than the social benefit from consumption.
8 0
3 years ago
The dollar has appreciated against the currencies of many of the U.S.'s top trading partners. What outcome could this fall in fo
fenix001 [56]

Answer: Aggregate demand would shift to the left due to a decrease in US exports.

Explanation When the dollar appreciated against foreign currencies, U.S. goods and services become relatively more expensive, reducing exports and boosting imports in the United States. Such a reduction in net exports reduces aggregate demand.

6 0
3 years ago
Read 2 more answers
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